With earnings on tap this week and next, the transportation group will likely cover more miles than usual. To one technician, the only direction for the group is up.

"The charts are bullish on the iShares Transports ETF (ticker IYT)," Ari Wald, head of technical analysis at Oppenheimer, told CNBC's "Trading Nation" on Monday. "The trend is positive."

The 200-day moving average, which acts as a proxy for trend, is heading north, says Wald who rates the industry as a buy. That longer-term moving average currently sits at $181 a share, a level the ETF has not closed below since November.

"Within this uptrend, we are seeing some signs of stabilization at an important support level. That support level is about $181," said Wald. "We came down and tested it in early February, tested it again more recently, so we are seeing some signs of base building at that important level."

Gains over the past week have also improved the technical outlook for transports stocks, he said. The IYT has risen by more than 1 percent three times in the past five sessions.

"It is reversing the ETF's downtrend year to date. I think it would be the final confirmation you're looking for a rally through $196 resistance," said Wald.

The IYT currently trades nearly 3 percent from its $196 level of resistance. The ETF has not closed above that level since early February.

As for individual names, Wald favors large-cap railroad companies such as Union Pacific and mid-cap trucking companies, including Old Dominion.

Stacey Gilbert of Susquehanna sees the bullish case for transports stocks from a fundamentals perspective.

"Investor concerns about first-quarter profits being weaker because of harsh winter weather and inconsistencies with railroads were really short-sighted," Gilbert, head of derivatives strategy, said on "Trading Nation." "For truck-levered companies, this is the best fundamentals backdrop that they've seen in a decade."

In the trucking subsector, Gilbert and Susquehanna senior equity research analyst Bascome Majors see potential for J.B. Hunt and Hub Group. They forecast at least 20 percent to 22 percent upside from current levels, one of the more bullish calls on the Street for both names.

About

Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.